Final answer:
The statement is false as alimony payments typically require that the payor and payee live in separate households at the time of payment for tax purposes.
Step-by-step explanation:
The statement in question is false. In general, for payments to be considered alimony for tax purposes, the payor and payee must not be members of the same household when the payments are made. Alimony is a legal obligation to provide financial support to a spouse after separation or divorce. The Internal Revenue Service (IRS) has specific rules that govern the deductibility of alimony payments and one of these rules states that separated or divorced couples must be living apart for payments to qualify as deductible alimony.
It's important for both the payor and payee to follow the IRS requirements to ensure payments are treated correctly for tax purposes. Otherwise, they may face issues with the IRS regarding the deductibility of these payments.